Key Witness On Deck At NYC Insider Trading Trial
NEW YORK (CBSNewYork/AP) — A former Intel executive who has pleaded guilty to leaking company secrets has begun testifying in New York City at a hedge fund manager’s insider trading trial.
Prosecutors say Rajiv Goel and the defendant, Raj Rajaratnam, were caught on a wiretap discussing a closed-door meeting in 2008 of the Intel board of directors. Goel revealed that the board agreed to invest up to $1 billion in a joint wireless venture by Sprint and Clearwire.
Goel said early in his testimony Tuesday that he violated his obligation to keep secrets by sharing information with Rajaratnam.
The 53-year-old Rajaratnam has pleaded not guilty to charges he made millions trading illegally on secrets.
Nineteen defendants charged in a federal crackdown on insider trading have pleaded guilty. Some are cooperating, including Goel.
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